Michaela Whitbourn, Kate McClymont, Sean Nicholls

Premier Barry O'Farrell has categorically denied to a corruption inquiry that he received a $3000 bottle of wine from the head of a company linked to the Obeid family.

In a tense afternoon at the Independent Commission Against Corruption, Mr O'Farrell insisted he also could not recall a phone call on April 20, 2011, with the man who allegedly sent the lavish gift.

The commission heard explosive claims earlier on Tuesday that the then chief executive of Obeid-linked infrastructure company Australian Water Holdings, Nick Di Girolamo, sent Mr O'Farrell the $2978 bottle of Penfolds Grange in mid April 2011.

Mr O'Farrell did not declare the gift on his pecuniary interests register.

Barry O'Farrell said he could not recall receiving a bottle of Penfolds Grange. Photo: John Veage

Phone records record Mr O'Farrell called the businessman at 9.29pm on April 20, 2011 - around the time the gift was couriered to his house.

"I have no knowledge," Mr O'Farrell said of the 28-second call.

The commission is investigating allegations that the family of corrupt former Labor minister Eddie Obeid were "secret stakeholders" in Australian Water and stood to make up to $60 million from the partnership proposal.

A month after the wine was allegedly couriered to Mr O'Farrell's north shore home, Mr O'Farrell met Mr Di Girolamo at state Parliament, on May 27, 2011.

Former finance minister Greg Pearce has given evidence he was "taken aback" at how "cosy" the meeting seemed when he arrived.

Mr O'Farrell admitted that he and Mr Di Girolamo had each other's mobile phone numbers and said they may have spoken to each other or texted once a month or once every two months.

Asked how Mr Di Girolamo, a prominent Liberal Party fund-raiser and associate of the Obeid family, could have secured a meeting with him, Mr O'Farrell said that at the time Mr Di Girolamo was a prominent businessman.

"I do think we need to judge people as we found them at the time and not with the benefit of hindsight," he said.